July 16th, 2019 Mortgage Industry Update

The Bank of Canada announced on July 10th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019, with the small possibility of a rate decrease.

Additionally this week:– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!

– Sotheby’s International Realty Canada’s 2019 Mid-Year Real Estate Report: Year-over-year luxury home sales in Toronto are up through the first six months of 2019. Sales for homes over $1M surged 12% in Toronto, while sales in the $1-2m range are up 13%. $2-4m range up 9%.

– CMHC: Canadian housing starts surged to the highest level in more than a year in June, led by construction of condos, row houses. Builders started work on annualized 245,657 units last month, up 25% from May. Topped the median forecast of 208,600 units.

– Nearly 4 out of 10 condos in Toronto are not owner-occupied, according to the latest Statistics Canada data. As much as 39.7% of the city’s condo units were found to be either vacant, rented out, or used as second properties by their owners.

– Statistics Canada: After 2 months of growth, Canada’s workforce lost more than 2,000 jobs in June as unemployment rate crept up to 5.5%. 24,100 full-time jobs last month, offset by loss of 26,200 part-time jobs. Followed 27,700 new jobs in May, and much stronger 106,500 in April.

– TREB: 9,989 property sales in the GTA in June, up 18.9% from 2018. Also up from May’s 9,042 sales. Marks second consecutive month of double-digit gains. Active listings across the GTA down 4.3% from 2018. Average selling price up 3.6% year-over-year to $838,540.

Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.